Kandi Technologies Group, Inc. Ordinary Shares 2026 Q2 Earnings Call

Thank you. Hello, everyone, and welcome to Kandi Technologies Group Inc.'s First Half 2026 Earnings Conference Call. As a reminder, today's call is being recorded. The company's financial and operational highlights were issued in a press release earlier today and are available online. You can access the earnings press release and subscribe to the company's email alerts by visiting the investor relations section of our website at ir.kandigroup.com. Joining us today are Mr. Feng Chen, Chief Executive Officer, and Mr. Alan Lim, Chief Financial Officer. Before we begin, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.

Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligations to update any forward-looking statements except as required under applicable laws. Unless otherwise noted, all financial figures discussed today are in USD. I will now turn the call over to our CEO, Mr. Feng Chen, who will deliver his remarks in Chinese, followed immediately by English translation. Mr. Chen, please go ahead. Good day, investors and analysts. Welcome to Kandi Technologies' earnings conference call for the first half of 2026. Thank you for your continued interest and support of the company. The first half of 2026 marked a new phase in Kandi's strategic transformation as our new business initiatives began to deliver tangible results.

Our battery-swapping business, in particular, is gaining commercial traction, showing that our earlier investment and development efforts are paying off. It is now poised to become an important growth driver. Growth momentum as our core business also strengthened significantly, driving robust gains in both our top and bottom lines. Meanwhile, we continue to build out our off-road vehicle dealer network, refine our retail partnership model, and refresh and upgrade our product line-up. This financial and operational progress demonstrates that our strategy is driving improvements in operating performance and business fundamentals, reinforcing our confidence in our next phase of growth. Our first half revenue grew 57.4% year-over-year to $57.1 million. Revenue from our core off-road electric vehicle business increased 59.4% to $54.2 million, including $6.1 million from Rawrr, the electric off-road motorcycle brand we acquired in February 2026.

Higher revenue and gross profit, combined with relatively stable operating expenses, drove a return to operating profitability and a a significant improvement in earnings. Net income rose 452.2% year-over-year to $9.4 million. As of June 30, our cash and cash equivalents, restricted cash and certificates of deposit totaled $285.7 million, providing a solid financial foundation to support future growth.

在2025年业绩电话会上，我曾介绍过康迪的双引擎战略，以北美非公路电动车业务巩固基本盘，并围绕能源与智能装备领域培育新的增长来源。沿着这一方向，我们在持续推进能源换电装备和智能机器人业务的同时，通过战略控股杏储新能源，将能源业务进一步拓展至AI数据中心储能领域。我们将持续提升核心业务的产品竞争力和渠道效率，并根据各项新业务的发展阶段推进商业化，逐步形成更多元的收入来源和增长动力。 On our full-year 2025 earnings call, I outlined Kandi's dual engine strategy, strengthening our core North American off-road electric vehicle businesses while cultivating new growth drivers in energy and intelligent equipment.

On the new driver side, we are advancing our battery swapping equipment and intelligent robotics business, and we broadened our energy solutions for AI data centers by acquiring a controlling stake in Xinchu New Energy. Going forward, we will continue to improve product competitiveness and sales channel efficiency in our core business while tailoring our commercialization efforts for new business to each one stage of development. Over time, this will diversify our revenue base and growth drivers.

接下来，我将向大家介绍各项业务在上半年及近期取得的进展，以及下一阶段的工作重点。 Next, I would like to share more details on our first half progress and recent developments across each business, as well as our priorities going forward.

在新业务方面，能源换电装备业务的商业化取得了实质性进展，目前已进入规模化生产阶段。今年7月，我们旗下中换电获得宁德时代重卡换电站设备批量采购订单，仅两个月后，中换电又新签了一个批量重卡换电订单。订单的持续落地，表明前期技术积累与战略合作正在逐步转化为商业成果，也为后续生产交付奠定了坚实基础。我们预计这项业务将在今年下半年贡献可观规模的收入，逐步成为公司新的增长来源。 Let me begin with our new business initiatives.

We have made tangible progress in commercializing our battery swapping equipment and are now in volume production. In July, our subsidiary, China Battery Exchange, secured its first batch order from CATL's QIJI Energy subsidiary for heavy-duty truck battery swapping station equipment. Just two months later, it received another batch order. These orders demonstrate that our investments in technology and strategic partnerships are beginning to pay off, while also providing visibility for planning, production and deliveries. We expect this business to begin generating meaningful revenue in the second half of this year, emerging as a new growth driver for Kandi.

对康迪而言，换电装备业务是将技术和制造能力延伸至新能源基础设施领域的重要一步。下一阶段，我们将以订单交付为重点，提升产品质量和交付效率，并同步完善售后服务能力。我们的目标是通过可靠的项目执行，巩固客户合作，争取后续订单，在积累交付经验的同时，提升规模化生产能力，推动换电装备业务形成持续的增长动能。 Our entry into the battery swapping equipment business marks an important step in extending Kandi's technology and manufacturing expertise to new energy infrastructure.

Looking ahead, our priorities are to fulfill customer orders, improve product quality and delivery efficiency, and strengthen our after-sales service capabilities. We aim to deepen customer relationships and secure follow-on orders by constantly meeting our project commitments. As we accumulate product delivery experience and scale manufacturing capacity, we will be better positioned to drive sustained growth in this business.

在智能机器人方向，我们保持持续的投入，聚焦四足机器人在安防巡检和物流园区等场景中的应用。这项业务仍处于早期研发阶段。现阶段我们会围绕实际的客户需求、产品适配和场景验证推进工作，并据此评估后续投入。 In intelligent robotics, we continue to invest in autonomous quadruped robots, focusing on security patrols, inspections, and applications in logistics parks.

This business remains in an early R&D stage. Our work is currently centered on aligning development with customer needs, tailoring products to specific use cases, and validating their performance in real-world settings. Progress in these areas will guide our decisions on further investment.